Japan – lesson learnt from custom audits

On 10 November 2021, Japan Customs released its annual report on customs audits. The report covered customs audits on 715 importers conducted from July 2020 to June 2021.

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Japan – PwC Webcast on ‘Qualified Invoice Retention System’

As previously reported, Japan will introduce a new qualified invoice regime for Japanese Consumption Tax (JCT) with effect from 1 October 2023. The new system will align the JCT regime more closely with European-style VAT regimes, and in order to claim input tax credit, the purchaser will be required to retain ‘qualified invoices’ issued by ‘qualified invoice issuers’. This change will greatly impact not only companies conducting their business physically within Japan, but also foreign companies providing digital services to customers in Japan.

Please see below for further details of the new system, along with a link to a short webcast which highlights some key points that taxpayers should be particularly mindful of. The webcast (available from 12 July 2021 to 11 July 2022) also identifies certain practical issues that may arise, and is a starting point for taxpayers looking to plan their transition to the new invoice system.

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Japan – tax respond to COVID-19

Tax filing and payment due date for Individual (not corporate) taxpayer for 2019 due at 16 March 2020 was extended to 16 April 2020.

JAPAN: Increase of the consumption tax rate as from 1 of October 2019

On October 1, 2019, the Japanese consumption tax (JCT) rate will be raised from 8% to 10%. Taxable sales and taxable purchases conducted on or after that date are generally subject to JCT at 10%. However, transactions of specific items will remain subject to JCT at 8%. This is mandatory and not optional.Read More »

Outline of Japanese consumption tax system

Read HERE to find out more or feel free to contact my colleague of PwC Japan: Takashi Murakami (takashi.a.murakami@jp.pwc.com) / Kataku Kimu (kotaku.kimu@jp.pwc.com).


Bildquelle: Bernd Laprecht / pixelio.de


Japan – Tax authorities’ guidelines for the new JCT rules as of 1 October 2015

503636_web_R_by_Thommy Weiss_pixelio.deThe Japanese National Tax Agency (NTA) published its guide on the Japanese Consumption Tax (JCT) obligations of the cross-border supply of electronic services.

You can access the English version of the document intended for foreign businesses HERE. The NTA also published some further documents HERE on this topic, however all these documents “are used only for explanations”.Read More »

Japan – foreign providers of electronic services are required to register for consumption tax as of 1 October 2015

87319_web_R_by_Fabian Voswinkel_pixelio.deThe Japanese Diet which requires non-resident electronic service providers to register for Japanese consumption tax (JCT) as of 1 October 2015 passed the legislation.Read More »

Japan – Update on proposed legislation proposed for Japanese consumption tax (JCT) on cross-border services

72266_web_R_by_mg-projects.at_pixelio.deAs previously reported, the Japanese government plans to tax the supply of electronic services by non-established service providers, as of 1 October 2015. The proposal is expected to pass through the legislation this spring.

According to the draft legislation the place of supply of electronic services will change from the origin principle (i.e. where the supplier is established) to the destination principle (i.e. to the place where the recipient is located). Read More »

Japan: new legislation to tax cross-border electronic services provided by non-established companies to come soon

Currently the B2C supply of services by a non-established company to Japanese customers is not subject to Japanese consumption tax (JCT). This provides competitive advantage to non-established service providers of electronic services compared to Japanese businesses. Since the JCT rate increased from 5% to 8%, with another increase to 10% estimated from 1 October 2015 this advantage is increasing further.Read More »